$4.4M exemption sought for Woodbury Common project

Sunday

Jun 23, 2013 at 2:00 AM

Woodbury Common Premium Outlets has petitioned the Orange County Industrial Development Agency for a sales tax exemption on building materials and equipment rentals for the $120 million expansion and upgrade of the shopping mecca.

James Walsh

Woodbury Common Premium Outlets has petitioned the Orange County Industrial Development Agency for a sales tax exemption on building materials and equipment rentals for the $120 million expansion and upgrade of the shopping mecca.

The application was reviewed Thursday by the IDA, which still must schedule a hearing to obtain public input.

As proposed, the sales and use tax exemption would not exceed about $4.4 million.

One of the stated goals of the IDA has been to boost economic activity by promoting tourism. Woodbury Common has long been recognized as a major draw to the region. It tallies about 13 million visitors annually, John Villapiano, a senior manager of development for Simon Property Group Inc., told the IDA board.

"This is one of the most productive retail properties in the world," Villapiano said, generating sales of about $1,500 per square foot of retail space annually.

Other executives of Simon, the owner of Woodbury Common, have said the planned project represents more than a face-lift for the shopping center, which dates to 1985.

Traffic, long an issue in and near the site, may be eased by the construction of a four-level parking garage and the revamping of interior roadways. Simon aims to ease the flow of cars and tour buses, while also keeping pedestrians and vehicles away from one another.

Plans also call for an additional 60,000 square feet of retail space and an expansive food court with outdoor balconies that will replace the iconic tower building.

Villapiano told the IDA board that the project will generate 400 to 500 construction jobs over two and a half years, as well as about 400 permanent full- and part-time jobs.